LANSING – A controversial bill that would ban cities and towns from making developers provide a community benefits package for projects that involve tax incentives or breaks passed out of the House Michigan Competivness committee this morning on an 8-7 vote.

The bill, offered by state Rep. Earl Poleski, R-Jackson, is intended to level the playing field for businesses looking to locate in Michigan. The Detroit Regional Chamber of Commerce testified last week that there shouldn't be a pactchwork of regulations across the state for developers who are looking to build in communities.

"If some particular town puts their own community benefits agreement out there, that's something that's inconsistent," Poleski said. "We need some sort of consistent, predictable business environment without a business having to worry about whether they're complying with the agreement."

He'd also like to get rid of tax incentives for business as well, although that's not necessarily an issue for this lame duck session.

"Tax abatements are an admission that the existing tax and business structure in the unit of government is inadequate to attract and retain business," he said.

But communities, especially in Detroit, said the bill is just another slap at a city that continues to be harmed by Lansing.

"If you're going to be a company that comes to Detroit and you ask for substantial tax credit, it's a reasonable request," said state Rep. Harvey Santana, D-Detroit. "The citizens of the city are going to have to make up the difference. We have to ask what are we getting in return."

A community benefits package could do things such as require that a developer hire workers from the community where they're locating or put in place environmental protections.

In tearful testimony, state Rep. Rashida Tlaib, D-Detroit, told of constituents in her district desperate for jobs and unable to find them, even though developers are coming back to the city.

"When the Marathon Oil Refinery Expansion was given a $175 million tax break, they agreed that 51% of the jobs would go to Detroit residents," she said. "And only 15 jobs went to Detroiters."

Rep. Rashida H. Tlaib, D-Detroit(Photo: rashidatlaib.com)

The Detroit City Council has been working for two years on crafting a community benefits agreement ordinance, which would require developers with projects of more than $15 million and who are getting at least $300,000 in tax breaks, to provide certain benefits for the city. That ordinance has not passed the council yet. Both the council and Detroit Mayor Mike Duggan have voiced their opposition to the bill.

"This is a local control matter," said Lisa Howze, the director of government affairs for the city. "We know our council has been working on an ordinance and the mayor and council have worked well together on issues of importance to the city and we'd like that to continue."

But what was even more galling to members of the Detroit delegation in the Legislature was that none of them were consulted on the bill and no Detroit council members or residents were allowed to testify at the hearing Tuesday, although council President Brenda Jones sat with Tlaib as she testified before the committee.

"We know how much development is going on in the city of Detroit and to have local municipalities hands tied, it's very disappointing," said Jones after the hearing.

The bill also includes a ban on cities passing ordinances that would dictate pay levels of sick days for employees working in the city.

The bill now moves to the full House of Representatives for consideration.